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The Rise in Female Employment and the Role of Tax Incentives. An Empirical Analysis of the Swedish Individual Tax Reform of 1971

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  • Selin, Håkan

    () (Department of Economics)

Abstract

Sweden reached the 2007 OECD average level of female labor force participation already in 1974. Before, but not after, 1971 the average tax rate facing the housewife was a function of the income of her husband. By exploiting a rich register based data source I utilize the exogenous variation provided by the individual tax reform to analyze the evolution of female employment in Sweden in the beginning of the 1970’s. Simulations suggest that employment among married women would have been 10 percentage points lower in 1975 if the 1969 statutory income tax system still had been in place in 1975.

Suggested Citation

  • Selin, Håkan, 2009. "The Rise in Female Employment and the Role of Tax Incentives. An Empirical Analysis of the Swedish Individual Tax Reform of 1971," Working Paper Series 2009:4, Uppsala University, Department of Economics.
  • Handle: RePEc:hhs:uunewp:2009_004
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    Cited by:

    1. Clément Carbonnier, 2014. "The influence of taxes on employment of married women, evidence from the French joint income tax system," Sciences Po publications 23, Sciences Po.
    2. Avdic, Daniel & Johansson, Per, 2013. "Gender Differences in Preferences for Health-Related Absences from Work," IZA Discussion Papers 7480, Institute for the Study of Labor (IZA).
    3. Hochguertel, Stefan & Ohlsson, Henry, 2012. "Who is at the top? Wealth mobility over the life cycle," Working Paper Series 2012:1, Uppsala University, Department of Economics.
    4. Angelov, Nikolay & Johansson, Per & Lindahl, Erica, 2013. "Gender differences in sickness absence and the gender division of family responsibilities," Working Paper Series, Center for Labor Studies 2013:5, Uppsala University, Department of Economics.
    5. Stefan Hochguertel & Henry Ohlsson, 2011. "Wealth mobility and dynamics over entire individual working life cycles," BCL working papers 56, Central Bank of Luxembourg.
    6. Klara Kaliskova, 2013. "Family Taxation and the Female Labor Supply: Evidence from the Czech Republic," CERGE-EI Working Papers wp496, The Center for Economic Research and Graduate Education - Economics Institute, Prague.
    7. Angelov, Nikolay & Johansson, Per & Lindahl, Erica, 2013. "Is the persistent gender gap in income and wages due to unequal family responsibilities?," Working Paper Series 2013:3, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    8. Piotr Lewandowski & Iga Magda & Jan Baran & Olena Fedyuk & Attila Bartha, 2013. "Gender Dimensions of the Labour Markets over the Past Two Decades," IBS Working Papers 1/2013, Instytut Badan Strukturalnych.
    9. Forslund, Anders & Fredriksson, Peter, 2009. "Income support systems, labour supply incentives and employment – some cross-country evidence," Working Paper Series 2009:32, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    10. Forslund, Anders, 2009. "Labour supply incentives, income support systems and taxes in Sweden," Working Paper Series 2009:30, IFAU - Institute for Evaluation of Labour Market and Education Policy.
    11. Kalíšková, Klára, 2014. "Labor supply consequences of family taxation: Evidence from the Czech Republic," Labour Economics, Elsevier, vol. 30(C), pages 234-244.

    More about this item

    Keywords

    Female labor supply; income tax reforms;

    JEL classification:

    • H24 - Public Economics - - Taxation, Subsidies, and Revenue - - - Personal Income and Other Nonbusiness Taxes and Subsidies
    • J21 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Force and Employment, Size, and Structure

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